BGC Partners, a global inter-dealer broker of financial instruments, has entered into a definitive agreement through one of its affiliates to acquire Brazilian inter-dealer broker Liquidez DTVM.
BGC Partners has agreed to purchase Liquidize for an initial consideration made up of approximately an even amount of cash and partnership equity and which values Liquidize at approximately seven times its expected 2008 post-tax profits.
The transaction is expected to close in the first quarter of 2009 and to be immediately accretive to BGC Partners’ distributable earnings.
According to BGC, the addition of Liquidize, with its 70 brokers, will allow BGC to benefit from these strong fundamentals and to develop a significant inter-dealer broker business in Brazil, even as it provides a platform for further expansion in other parts of Latin America.
Renaldo Coelho, president and CEO of Liquidize, said: This agreement marks an important milestone for Liquidize. We will benefit greatly as we leverage Bag’s investment in its cutting-edge technology and global platform. Our brokers will be able to both increase their productivity and greatly expand the number of services and products available to Brazilian clients.